Rising FinTech Fraud Threats B2B Market « Ecommerce News, Conferences, Platform Reviews & Free Quote Requests

These days the FinTechs market is witnessing growth but competition. And it’s no surprise that many FinTechs have fallen victim to numerous online scams in the recent past. The B2B market today is a volatile area.

Data claims that on average, FinTech in the United States of America loses fifty-one million dollars to fraud. This is periodic data, as it happens every year. The data is still understated. First, these are only reported cases. Second, only FinTechs entered the picture in the data.

There is much more fraud than this report shows. The report talks about the “fraud wave effect in fintech”. There is more than one way in which businesses fall victim to fraud. Several methods lead to cases of fraud.

The result of these massive recurring fraud cases is an increased level of security among businesses and the B2B market. Financial technology is imposing ever-increasing friction on account holders.

Some FinTechs are very cautious and therefore impose several restrictions on account holders. Although the increased level of security increases the inconvenience faced by users, there is no way out.

Almost all users find it difficult to conduct their transactions in the B2B market due to increased friction. They face problems transferring money and making deposits. Although the increased friction should reduce the causes of fraud, it also creates other consequences for users.

Consequently, poor user experience in the B2B market is becoming commonplace. Friction in FinTechs fraud prevention system makes it difficult for users to use fast payment methods.

Most fintechs are looking for other ways to make room for a smooth, frictionless system. They prefer to invest in instant offers like cryptocurrency wallets. This, they believe, can contribute to a convenient B2B market.

Implementation of cash withdrawal options without a card in the store and investing in a cryptocurrency wallet is the best alternative for FinTechs. A smooth system must come in to facilitate convenience in the B2B market.